Rathdrum's city budget proposal for fiscal 2013 calls for a 1.9 percent property tax increase.

The public hearing on the budget is Aug. 21 at 6 p.m.

City officials say the tax hike proposal stays in line with modest increases in recent years.

The City Council went with a 1 percent hike last year preceded in previous years by 1 percent, 1.9 percent, 1.92 percent and no increase for an average of 1.16 percent for the past five years. Cities are allowed to bump taxes 3 percent each year under law.

For the owner of a $200,000 home, the new tax increase, if approved, would be about $19 per year.

Rathdrum's total proposed General Fund budget is $4.57 million, slightly lower than the present budget of $4.62 million.

"The difference is partly due to a grant for $117,927 for Majestic Park in the current year budget," said Brett Boyer, city administrator.

The grant added a splash pad, two softball fields, playground equipment and walkways at the 12-acre park on the southeast side of town that's expected to open this fall.

"We will continue to expand our parks and recreation programs and will open and continue adding items in Majestic Park," Boyer said.

Rathdrum's foregone tax balance is $154,206, but the council does not plan to take any of that amount for its budget this year.

Boyer said a priority for the upcoming budget is continuing road and pathway projects through overlays, repairs and new construction.

"We have budgeted an increase for pathway construction from $60,000 last year to $80,000 this year to continue to connect the city with pathways in key areas," Boyer said.

Other budgeted items include a new front-end loader for $150,000 for public works, a new police car for $22,000 to continue the replacement rotation of patrol cars and a used truck for $14,000 to replace an older one in the animal control program.

In the water department, Rathdrum will start the planning and design of a new water pump and storage unit on the southwest side of town. Several sewer valves along the line to Post Falls are also slated to be replaced.

The budget calls for a 3.6 percent cost of living increase for employees across the board. No raises were given last year.

"The CPI (consumer price index) is more than 5 percent for the two years and we also looked at the Social Security increase being 3.6 percent and used that as an indicator as well," Boyer said, referring to the cost of living increase.

No merit raises are planned nor are there any automatic raises based on longevity or other factors, Boyer said.

"The council is considering a market adjustment some management positions," he said. "This will probably be considered later in the year."

No new full-time positions are planned. No programs or positions are slated to be cut.